Will Nationwide drop ther SVR at 4.69%?

paulsrich

Hiya,

I am on Nationwide SVR at 4.69% but will there drop it 1%. There are already cheapest so dont think so. I would like to think that there will drop 0.5% mind you............What are your thoughts?

ian-d

Well I'm sure Nationwide have a policy of being no higher than 2% above the BOE rate, so surely that means they will drop to at least 4%?

Can anyone confirm that this is accurate?

nell2

That's what they told me in the branch last week.

nell2

Have just checked their website.
On this page it says they guarantee not to be more than 2% above BoE base rate for their Base Mortgage rate.

http://www.nationwide.co.uk/mortgage/existingcustomer-switchingmortgage/productsandrates/variableinterest-rates.htm

Galvatron_2

Do Nationwide have a collar on their SVR as they do on their tracker mortgages? I thought I read somewhere that while the variable rate couldn't be more than 2% above the base rate, if the base rate fell below 2.75% it would still be considered to be 2.75 - effectively meaning that their SVR would be unlikely to ever go below 4.75%.

I could have been confused though, as many sites including their own describe their SVR and Tracker deals on one page.

Galvatron_2

well they've announced that they're passing on the full cut for tracker mortgages, waiving the 2.75 'collar'.

SmileyG_2

Galvatron wrote: »

Do Nationwide have a collar on their SVR as they do on their tracker mortgages? I thought I read somewhere that while the variable rate couldn't be more than 2% above the base rate, if the base rate fell below 2.75% it would still be considered to be 2.75 - effectively meaning that their SVR would be unlikely to ever go below 4.75%.

I could have been confused though, as many sites including their own describe their SVR and Tracker deals on one page.

Also from their website.....


"Nationwide and the Bank of England rate cut
The Bank of England’s Monetary Policy Committee have announced a 1% decrease in the base rate to 2%.
Nationwide will monitor the reaction of the market to this rate decrease and make a decision in due course.
Our priority is to ensure a strong competitive position in both the mortgage and savings markets."

lizzie_dripping

Galvatron wrote: »

well they've announced that they're passing on the full cut for tracker mortgages, waiving the 2.75 'collar'.

deleted as have just read further thread.

Digsy00

the SVR or Base Mortgage Rate is NOT a tracker.
However, it does guarantee NOT to be more than 2% above the BOE rate, and as such as no collar apart from the 2%.
Currently this is at 1.69% above BOE, but could be increased to 2%.
So at worst, they increase the rate to 2% (an increase of 0.31%) and drop the Base Rate to 2%, so you would be paying 4%, but that would leave no room to manouvre when the BOE rate drops below 2% which is very likely in the new year.

nell2

BBC news and website now reporting that Nationwide SVR is now 4% so they've knocked off 0.69, and in doing so, keep their promise of no more than 2% between SVR and BoE base rate.

ian-d

I'm confused, what advantage is there to a tracker rate of presently +2.19% (25% deposit) over just being on their base rate which is +1.69%? Surely they both move up and down with the market? Can anyone help with my obvious lack of understanding